Elon Musk, CEO of Tesla, recently announced that the company needs to undergo a “complete organizational overhaul” every few years in order to reach new levels of success. Musk’s comments come following a series of mass layoffs at Tesla, where over 10% of the staff were let go.
Despite this, Musk noted that the executive team at Tesla has remained stable for over a decade. He mentioned that Tesla needs to go through an overhaul every “half decade or so” to stay innovative and competitive. The recent layoffs were prompted by the company’s rapid growth, which led to redundancy in certain roles.
Musk expressed his dislike for the layoffs but insisted that they were necessary for the company to remain efficient and continue growing. The layoffs coincided with the departure of two long-time executives, Drew Baglino and Rohan Patel. Both executives announced their departure from the company this week. Baglino and Patel had been with Tesla since 2006 and 2016, respectively.
Tesla is currently facing challenges as it contends with declining sales and increased competition from Chinese automakers like BYD. Musk has acknowledged the competitive nature of Chinese car companies and the potential impact on Tesla’s global market share. Representatives for Tesla have not yet responded to requests for comment regarding the recent developments at the company.